Shriram City Union Finance to raise upto Rs 750 cr via bonds

Deposit-taking non banking finance company (NBFC) Shriram City Union Finance Wednesday said it plans to raise up to Rs 750 crore through non-convertible debentures (NCD). The base size of the issue is Rs 100 crore with an option to retain oversubscription of Rs 650 crore.

The company is offering three bonds maturing in 2, 3 and 5 years with coupons ranging between 9.55 percent to 9.75 percent, on an annual basis. This is the first NCD by the company in the last five years. It has an approval to raise Rs 3,000 crore from bonds.

"The funds raised through this tranche 1 will be utilised for various financing, lending, investments, repaying existing liabilities or loans, business operations and capital expenditure, among others," the company's executive director Y S Chakravarti told reporters. The issue will open for subscription April 5 and will close on May 3. The bonds will be listed on BSE.

Lead managers to the issue are A K Capital and Edelweiss Financial Services..